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An External Debt Problem Is That

Question 126

Multiple Choice

An external debt problem is that:


A) few countries that want to take out loans are willing to support U.S. policies.
B) many countries that borrowed from U.S. banks and other lenders are unable to pay off their loans.
C) there is no mechanism through which potential lenders in one country can make contact with potential borrowers in another country.
D) money is leaving the United States because interest rates on loans to foreign countries are higher than interest rates on loans to domestic borrowers.

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